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Your Credit Rating is an individually calculated assessment of how you have conducted your financial affairs in the past along with various other factors to give potential lenders an indication as to whether they should lend to you or not, and if they do the level of interest rate you should be charged.
Here we take a more detailed look at Credit Rating, and Credit Rating Agencies, as well as how you can check your own credit rating. We also look into how we can help those who have credit problems.
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So as we previously mentioned, Credit Ratings are a measure of how you have conducted your financial affairs in the past, together with your age, employment and residential status, to give potential lenders an indication as to whether they should lend to you or not, and if they do, the level of interest rate you should be charged.
Lenders who facilitate this method will all have closely guarded scoring systems, and usually incorporate information held on the credit register by one of the major Credit Rating Agencies.
Although the lender's credit rating systems are secret, the following aspects will undoubtedly be taken into account:
So what are Credit Rating Agencies exactly then? Well, Credit Rating Agencies (also referred to as Credit Reference Agencies and Credit Rating Bureaus) hold vast quantities of data about people and their financial conduct and financial circumstances.
This information may be accessed from time to time by financial organisation's such as Mortgage Lenders, Banks, and Credit companies upon an application for credit to ascertain how an individual has maintained their financial conduct. This information can help the financial institution in question as to the level of risk the borrower may potentially pose to them.
There are a few Credit Rating Agencies in the UK, however the main two are Experian and Equifax, and you can find out more details about them on our Credit Referencing Agencies page.
So you are probably asking 'How do I check my credit rating?'. Well, its probably easier than you might imagine. First of all you should know that under current Data Protection legislation, only you and any company you have authorised can have access to your credit rating.
By law you may check your credit rating held by a credit rating agency upon payment of a fee to the sum of £2.00.
If I've been refused a mortgage or a loan by a lender, does that mean I'm blacklisted and will be refused by all lenders?
No, not at all! Firstly to be absolutely clear there's no such thing as a "blacklist".
There are three main areas where a financial institution will gather information about you:
Each financial institution has its own credit rating formula, and some are more generous than others. However, the greater your perceived risk of potential default, the higher the rate of interest the lender will offer your borrowing rates.
So even if you have experienced previous credit difficulties, there are lenders who will consider lending to you. Here at Shire Direct we understand that not everybody's personal circumstances are the same, and we therefore have developed an extensive range of schemes to accommodate our customers' requirements - even in the trickiest circumstances!
Our assessments are not judgmental. Many people who don't have an acceptable credit rating, but do have the ability and the willingness to repay, all too often find the door to borrowing closed on them! Not so at Shire Direct!
We have the approach, the skills and the desire to arrange mortgage or loan funding, and you'll find our staff professional, helpful and friendly. So, if you're considering buying a property or remortgaging, or have experienced problems elsewhere, please don't hesitate to call us. We look for reasons to fund an application - not turn it down!
Our specialist underwriters and qualified advisors have a wealth of experience in carefully assessing your circumstances, and providing appropriate solutions and advice. Our Freephone line 08000 282 281 is open every day until 10pm (including the weekends), or you can enquire online if you prefer, we'd love to hear from you!
Hopefully, we've managed to enlighten you with regards to Credit Ratings and Credit Rating Agencies. Please don't hesitate to get in touch if you feel we could be of assistance!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Over £2,000 worth of Argos Vouchers to be won in the Shire Direct Grand Prize Draw 2008! Terms and conditions apply - please read article for full details.
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.
